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jeremy1
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I took early retirement plan withdrawal to care for disabled family member. Does this reason exempt this distribution from tax?

 
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I took early retirement plan withdrawal to care for disabled family member. Does this reason exempt this distribution from tax?

The withdrawal is taxable if you received a Form 1099-R with a taxable amount entered in box 2a.  There is not an exception to the 10% early withdrawal penalty for care of a family member.

See IRS Tax Topics for early distributions -

https://www.irs.gov/taxtopics/tc557

https://www.irs.gov/taxtopics/tc558

To enter a form 1099-R -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen.  Click on Jump to 1099-R

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